There is no doubt about the competition rising among the enterprises whether it’s a micro, small, medium or large units exists in India. As much as a business grows, that much GDP will be contributed to the country. Still, we found that some enterprises might have a great opportunity& solid business idea with them but cannot scale up their business due to lack of funds. Is that sound weird? Yes, it might be but there are various ways to arrange finance for business expansion.
The Government of India launched Mudra Loan Scheme under PMMY stands for Pradhan Mantri Mudra Yojana. The main objective of this scheme is to “fund the unfunded” enterprises.
Under this scheme, credit is facilitated to micro and small enterprises. These funds can be used for various purposes related to business expansion. The Mudra scheme is categorized into 3 different categories:
|Category||Maximum Loan Amount||Objective|
|SHISHU||Rs. 50,000||Individuals that are looking to start-up business at an early stage.|
|KISHOR||Rs.5 Lakh||Entrepreneurs who are running units & looking for additional funds to expand business.|
|TARUN||Rs. 10 Lakh||It can be availed by fully established businesses & funds can be used for business expansion.|
Key features: -
Mudra Loan Details
|Interest Rate||7.30 % Onwards p.a|
|Loan Amount||Ranging from Rs.50,000 to 10 lakh|
|Processing Fee||Subject to the lender|
|Loan Tenure||Maximum 84 months|
Also Read:- Working Capital Loan Low Interest Rates
Any entrepreneurs with a solid business plan for non-farm income-generating activity including processing, manufacturing, trading or service sector are eligible. Especially, women belonging to SC, ST, OBC categories will be given preference.
A lender wants its applicant to meet the criteria set by them, requirements shall differ from lender to lender, some of the common eligibility requirements are listed below: -
|Age Criteria||18 years – 65 years|
|Eligible Units||Both new & existing MSME units are eligible|
|Eligible Lending Institutions||Small Finance Banks, Micro Finance Institutions, Regional Rural BanksPublic& Private Sector Banks|
|Maximum credit limit||Applicant credit limit should not exceed 10 lakhs|
|Collateral||No collateral/security required|
|Documents||Identity proof, address proof, application form along with 2 passport size photographs|
You can easily check your eligibility for mudra loans just by verifying a few details with the financeseva online portal, tapping on mudra loan under the unsecured category & simply filling the required fields, your eligibility status shall be shared over your registered Gmail address.
Whether you are a startup or existing MSME business unit looking for funds, Loans can be availed from the eligible lending institutions enrolled under mudra schemes:
Even though it’s a lending institution, they also need to consider certain parameters to meet the eligibility criteria set by mudra schemes as given below:
Also Read:- MSME Loan Scheme
To avail PM Mudra scheme loan, Follow the step-by-step guide: -
Step 1: Compare which lender is enlisted under the Mudra scheme & offer best interest rate on loan.
Step 2: Approach the lender online if they have an online application facility & visit offline to request an application, fill the required details with attaching relevant documents & submit the same.
Step 3: Once the lender gets satisfaction with your application, they would update the status via Email ID & take the process ahead to sanction.